Fed Fights to Weaken Dollar

Faced with the threat of deflation, the Federal Reserve (Fed) may be trying to drive the dollar lower to spur inflation. As policy makers dont want home prices to deteriorate further, an alternative is to inflate the prices of all other goods and services: as a result, the relative prices of homes would be less expensive. Weakening the dollar is an effective policy tool to drive up inflation as the cost of import goes up. Just be careful: the Fed may be getting more than it is bargaining for. Fed Chairman Bernanke believes that a weaker dollar will only drive up inflation modestly; in our humble opinion, we believe he may be mistaken. Foreigners have a limit on how much margin pressure they can absorb before they have to pass on the higher cost of doing business. No country has ever depreciated itself into prosperity and the U.S. is unlikely to be the first.

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• falling dollar
• debt monetization
• Merk Hard Currency Fund
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• Axel Merk
• printing money
• qualitative easing
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• zero percent
• finance the deficit
• Fed policy
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[FkyGGGG]

I Agree with Merk!

[smudge6699]

What collateral does the FED have to print money, what wealth or assets backs it?

Similarly what collateral do the IMF & World bank have to lend a seemingly infinite amount of money?

Is quantitative easing just a legitimised form of counterfeit and if so why can't the "people " become international bankers and engineer their own quantitative easing?

Is the worldbanking saystem run by white collar fraudsters?

Just a thought.

[adryanv]

I agree, it seems the FED seems to be printing more money then what is good for our economy.

[teymani]

right on the money . to all of you if you have the brain you buy gold , your paper currency will be worth as much as toilet paper.gold is the historecly proven assets . you may say oh you cannot eat gold . well tell this to a billion indians and other 3rd world people they will set the price of gold .and our so called advanced society will eat paper dollars.